Samsung Electronics demonstrated the solid status of 'K-semiconductor' by recording strong performance despite business variables hitting the semiconductor market, such as geopolitical uncertainty and supply chain restructuring.

Samsung Electronics announced its first-quarter earnings on the 28th. On a consolidated basis, the company achieved sales of 77.78 trillion won and an operating profit of 14.12 trillion won, marking its highest quarterly sales since 2013.

Sales in the first quarter increased by 1.6% compared to the previous quarter, marking the highest quarterly sales in history for three consecutive quarters. It was analyzed that the DX division recorded its highest quarterly sales since 2013, driven by the success of its premium strategy. The DS division demonstrated balanced growth across the entire business, recording its highest-ever quarterly revenue by actively responding to demand for server memory.

Compared to the same period last year, sales increased by 19%, driven by memory and video displays.

Despite falling memory prices, operating profit and profit margin both improved compared to the previous quarter, driven by strong sales of the new flagship smartphone, the Galaxy S22 series, and premium TVs.

Compared to the same period last year, operating profit increased from 9.38 trillion won to 14.12 trillion won, rising 50.5%.

Looking at performance by business segment, the Device Solutions (DS) division recorded sales of 26.87 trillion won and an operating profit of 8.45 trillion won in the first quarter. In the memory sector, through a portfolio shift to actively respond to demand for servers and PCs, server sales recorded their highest-ever quarterly sales, and with price declines being milder than expected, the division achieved results that exceeded market forecasts.

Although the supply of System on Chip (SoC) and Image Sensor (CIS) in the System LSI division decreased due to the mobile off-season, performance improved compared to the previous quarter thanks to positive exchange rate effects and price increases.

Despite concerns such as supply issues, the foundry business has expanded the proportion of advanced processes and entered a stable trajectory for yields, amidst robust demand across all applications.

The display division recorded sales of 7.97 trillion won and an operating profit of 1.09 trillion won in the first quarter. The small and medium-sized panel division achieved its highest performance on a first-quarter basis, driven by strong sales from major smartphone customers and expanded sales in new applications such as gaming. Large Panel launched monitors equipped with QD displays as QD display production yields stabilized faster than expected.

The DX (Device eXperience) division recorded sales of 48.07 trillion won and an operating profit of 4.56 trillion won in the first quarter. Despite factors such as component supply shortages, geopolitical issues, and negative exchange rate impacts, the MX (Mobile eXperience) division saw sales growth and improved profitability compared to the previous quarter.

With flagship sales strong led by the Galaxy S22 Ultra, which integrates the Galaxy Note experience, and new mid-range 5G models featuring the flagship experience receiving favorable reviews, the Galaxy Device Eco product line, including premium tablets and watches, also recorded solid sales.

The network business continued its domestic 5G response while expanding its overseas business.

The Visual Display division saw revenue growth and improved profits compared to the same period last year, despite declining market demand, driven by expanded sales of premium, high-value strategic products such as Neo QLED and ultra-large displays.

Despite the burden of rising costs, the home appliance division achieved its highest quarterly revenue, driven by growth in premium sales centered on Bespoke.

Samsung Electronics predicted that macroeconomic uncertainty and logistics issues would persist in the second quarter. The company stated that the DS division plans to actively respond to robust demand, while the DX division will focus on securing profitability by expanding sales of new smartphones and TVs and strengthening its premium leadership.

In the outlook for the second half of the year as well, uncertainty stemming from macroeconomic and geopolitical issues is expected to persist. On the other hand, market conditions for the components business are expected to improve, and Samsung Electronics stated that it plans to focus on advanced processes and expanding new applications.

Samsung Electronics plans to continuously strengthen its premium leadership and lineup in the DX business. At the same time, it added that it intends to focus on providing a Multi-Device Experience (MDE) that encompasses TVs, home appliances, and mobile devices, which only Samsung Electronics can offer.

Furthermore, it is expected that facility investment will be concentrated in the semiconductor sector. Samsung's facility investment in the first quarter amounted to 7.9 trillion won, with 6.7 trillion won allocated to semiconductors and 0.7 trillion won to displays by business segment. In the memory sector, facility investment was executed primarily through infrastructure investment for the third phase of Pyeongtaek and process conversions in Hwaseong, Pyeongtaek, and Xi'an to prepare for increased demand. For the foundry business, investment proceeded with a focus on developing advanced processes of 5nm or smaller and establishing production capacity.

Samsung Electronics stated, “Even amidst extremely difficult business conditions, including macroeconomic and geopolitical uncertainties, our employees are making their best efforts through innovation and challenges,” adding, “We have once again achieved record-breaking sales through active collaboration with clients and partner companies.”